What is Shared Ownership

General Eligibility Criteria

The shared ownership scheme is a low cost home ownership initiative and is aimed to help people, usually first-time buyers, purchase a home.

Buyers should normally be unable to afford the outright purchase of a property suitable to their needs. They must also be able to fulfil the status requirements of banks/building societies (or other sources of mortgage finance which may be available) and have enough savings or income to meet the extra costs of purchase.

Priority will be given to purchasers who are:-

Key workers
First time buyers
Housing association tenants
Local authority tenants
Local authority nominee or on a local authority waiting list

This scheme is not open to investors or anyone who intends to buy with a view to renting the property out.

Home owners who are currently selling their property may be considered depending upon their current circumstances but they must have a buyer for their property who is able to proceed.

The above list contains various examples, but is not exhaustive. We will ensure that every application we receive is given consideration.

How Does Shared Ownership Work ?

When you buy through shared ownership, we will grant you a lease that sets out your rights and responsibilities.

You buy 50% or 75% of the property and the remaining share is rented from us. At a later date you can buy a further share (and pay less rent) or purchase the remaining equity and become the owner outright. This may be restricted if the property is situated in a rural area.

Prices will vary according to location and property type. The purchase price is based on the market value which has been assessed by an independent, qualified valuer.

Remember that house prices can go up and down. This means that sometimes you might pay more for buying additional shares or have to sell at a price lower than you originally paid. Prices are determined by an independent valuer or the District Valuer (dependant on the lease). These prices cannot be discounted.

What Will I Own ?

You will own your share of the property on the basis of a long lease (99 or 125 years). If you eventually buy the whole property you will be granted the freehold if your home is a house.

For flats, your home will always be leashold and you will remain liable for payment of the service charges.

What Does The Shared Ownership Lease Entitle Me To ?

It entitles you to live in your home until the lease expires.
It states which repairs and other outgoings you and your landlord (i.e. Tees Valley Housing) are each responsible for.
How the rent, building insurance and service charges (if applicable) are calculated and when they must be paid.
It explains how you can purchase further shares in your home, if you wish to do so.
It states your rights and responsibilities and those of Tees Valley Housing.

What Purchase Costs Can I Expect To Pay ?

If you require a mortgage, your lender may ask you to pay a deposit towards your mortgage requirements. For example if you wish to purchase 50% equity in a property selling at £100,000 and your lender requires a 10% deposit from you, your purchase price will be £50,000, 10% of this is £5,000.

Please note that you will be required to make your own mortgage arrangements, as we are unable to provide the professional advice you need. Therefore we strongly recommend you seek appropriate legal and financial advice about getting a mortgage. This can be obtained from reputable lenders or independent financial advisors.

You will also be required to pay legal costs to your solicitor. You may wish to contact us for details of local solicitors who have experience in shared ownership sales. Anticipated costs can range from £250 to £300 plus VAT, excluding disbursements.

Want to sell your Shared Ownership Property?

Details can be found on our Selling Shared Ownership Property page.

Further Information on Shared Ownership

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Download our Shared Ownership Leaflet

If you are interested in purchasing a shared ownership property from Tees Valley Housing or would like to know about any existing properties for sale or any new up and coming developments, please click here http://www.fabrickgroup.co.uk/properties.php